Research firms maintain ‘neutral’ call on banking sector after Bank Negara’s OPR cut | Malay Mail

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Research firms maintain ‘neutral’ call on banking sector after Bank Negara’s OPR cut | Malay Mail
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KUALA LUMPUR, July 8 ― Research firms have maintained a “neutral” call on the banking sector after the anticipated cut in the Overnight Policy Rate (OPR) yesterday by Bank Negara Malaysia (BNM). At the Monetary Policy Meeting (MPC) yesterday, BNM lowered the OPR by 25 basis points (bps) to a...

Wednesday, 08 Jul 2020 01:48 PM MYT

At the Monetary Policy Meeting yesterday, BNM lowered the OPR by 25 basis points to a historical low of 1.75 per cent from 2.0 per cent. “Early signs from the banking statistics suggest that pre-emptive loan provisioning may see an acceleration in the second quarter. In mitigation, the re-opening of the economy and significant cuts to the policy rate have helped clear some overhang for the sector,” said Kenanga Research.

It said every 25 bps reduction in the rate is expected to impact most banks' NIM by two to four bps and net profit by one to three per cent.

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